Thank you Gill. Yes, I have found a few sites online that suggest that I wouldn’t have needed to file the K-1, and one site that said I would. I’m going to go with Gill and the majority opinion that I’ve found online. The IRS asked for relevant documents that prove my disagreement with their proposa...

I am responding to an IRS CP2000. I think I understand why the IRS sent me this. In 2017 I received a 2016 K-1 with an ending date in 2017. Since the ending date was within 2017 that was the year that I paid the taxes on this. I suspect since I did not include a copy of the K-1 in my 2017 taxes, the...

Regarding the future taxes question, she could invest it in a tax-deferred interest bearing account now. Then in the year that she first has large un-reimbursed medical expenses (i.e. long-term care) the funds could be distributed and paid to the LTC facility. Her accountant could enter this as a me...

Thanks Bogglizer. That's how I did the math too. I wanted to double check before I encouraged the executor to keep looking for this. Paperwork is on the way as I understand it. We've been emailing equations back and forth wondering if we have it right or not.

Executors of an estate of which I am an heir have reason to believe an old stock certificate may have been lost. A dividend of $6000 was paid in 2010 (as seen on a line from the decedent’s 2010 tax return). The 2010 annual dividend for the stock was 1.185%. The largest portion of the annual dividend...

Carolinaman, Investor seems like the best word to me so far too, but I am not the only one deciding on or financing this tribute, thus the wording needs to meet the approval of a few others. Since this tribute will be in a permanent format which may appear on social media in the future (of which we ...

Not a crossword puzzle, just creating a tribute for a dear friend, where privacy is important; thus a euphemism could work. It should not have a negative connotation though, just a word that would be a little less obvious than investor, or shareholder. FINANCIER would fit, but it’s too specific. A m...

I am looking for a word which is a synonym of, or could be a euphemism for investor or shareholder. It should be longer than investor, but shorter than shareholder; about 9 or 10 letters long. I've googled, but so far haven’t found a word that fits the need. Thank you.

I was in a similar situation, only mine was the car that wasn’t moving at the moment of impact. In fact I was honking my horn since I saw how distracted the other driver was. I gave a recorded statement to my insurance company in which I stated that I was not moving. I did not want my insurance to h...

I read the home state out-of-state credit form over again. It says: Only residents with a tax liability in another state . . . may reduce their tax liability by claiming an out-of-state credit. While he will be filing the out-of-state form to get his refund and pay the sales tax due, he had no incom...

Generally he owes a non-resident return to the state for wages where he worked. He also owes a return to his state of residence for all his income; they will usually allow him a credit for taxes paid to the state where he worked. He is responsible for paying any balance due in either state. If ther...

I’m helping a family member with taxes. He is a nonresident of a neighboring state which withheld the correct amount. Normally he would file an out-of-state-credit form from his resident home state to get the proper amount transferred in. However, this year he is due a refund in the nonresident stat...

Is there an online tool (not a phone app) which can take 10 letters of my choice and create several short phrases with them? I want to use 10 significant letters to create a gift for a special occasion. It might not create a phrase I can use, but I'd like to give it a try.

Is Audit Defense worth that much? https://www.taxact.com/support/21940/2015/tax-audit-defense-frequently-asked-questions They don’t even review your return first. I would rather have the ability to review my own prior years tax forms and do tax planning for future years though. I got Windows 10 just...

We had that problem with our Honda keys. A family member made a replacement key for one he thought he lost while on a trip. When he got home with the vehicle, the remaining key still at home would no longer work. We took it to our Honda service center to have it reprogrammed. We told the Honda servi...

We hardly ever use the interview questions, so we always get the download version of TaxAct so we can get right to work on the forms. For 2017, I first ordered Plus, but when I couldn’t get a Schedule C to load up, I called TaxAct and they said that if I need to do a Schedule C I would need to get F...

I have a situation somewhat similar to yours. However, I only owned the funds (an inheritance) from Jan. - May 2018, so maybe not enough time for any foreign tax to be applied. For the period of 2018 before I sold, I did earn some dividends, but no capital gains. When I look at the 1099-DIV I see Bo...

The fine print I am picking up for some of the more attractive rates on “special certificates” is a full year of interest penalty for early withdrawals. No wonder they seemed so competitive. This isn’t always stated on their websites. I had to call to find this out.

If you are on a ranch (or have access to a suburban garden), find the crop you enjoy cultivating and sell the excess in your farmer’s market. If you grow tomatoes you won’t need to be so careful about when you harvest them. They are the least labor-intensive edible that we have grown in our garden. ...

Does a son or daughter keep his/her own car (which they insure themselves) garaged on your property? This fine distinction made a difference on our umbrella premium. Our umbrella policy's fine print includes extended liability coverage for all family members who reside with us, evidenced by their ke...

I hosteled in the UK for several weeks on a road trip with some friends many years ago when we were all in our twenties. Those memories meld together in a seamless flow of some of the most wonderful experiences of my life. There was one exception though. We were asleep in a dorm-style hostel near Ab...

Thank you for posting this. I made a note of this since I sold some I-bonds in January of this year so I’ll be looking for the 1099-INT next January. Are you saying Treasury Direct did not mail you a 1099-INT tax form this January for EE bonds that you sold in 2017?

Well at least they gave you the information upfront so you could look it up for yourself and plan for it. https://www.investopedia.com/terms/h/honorarium.asp Maybe you had to pay self-employment taxes, but you could deduct your expenses. (Not asking, though.) An independent contractor usually draws ...

With all due apologies/gratitude to the OP, I will try to respond quickly to CollegePrudens. If your W-2 job and 1099-MISC are from the same univeristy, then I’d certainly question the reason for a separate 1099. If your W-2 and 1099 came from different sources and you believe you do not meet the de...

I probably would long forget the capital loss for tax purposes before I would be able to take advantage of that. . . If my short term investment gives a small gain, I guess that will be offset by the current loss on the stock shares now. Net capital losses can be used to offset ordinary income. You...

^If OP follows the instructions for filling out Schedule C, he will be instructed to claim his expenses. When he does this the IRS may well take an interest. In the court case referenced above, the person tried to claim some expenses against his low income. This got the IRS’ attention. Why should OP...

If FICA compliance is too much, then in the future, the business owner should go through a temp agency and have them do the HR work. It’s not just one week of work in principle because the business owner has already asked the OP to be a fill-in in the future. OP can do whatever he wants this year, b...

This year sets a precedent and the likely expectation on the part of the business owner of the continuance of the status quo going forward. It depends whether the OP still wants to work with this person and under what presumptions. Do line 21 this year and that's what the business owner will expect ...

If I am following, at least three tax pros here are recommending to put this 1099-MISC on line 21 and wait for correspondence from the IRS, then decide what to do. That’s still a hassle every year. If OP goes for Line 7, this won’t be happening year after year. Sure, this business person may not hir...

Let’s think of this more from the OP’s perspective and less from the business owner’s perspective. If OP continues doing these short-term periods of work for this business person (as OP indicated upthread he is interested in doing) and she doesn’t provide Worker’s Compensation Insurance, then he is ...

When OP receives a 1099-MISC for this income, it will come with these instructions: Box 7. Shows nonemployee compensation. . . If you believe you are an employee and cannot get the payer to correct this form, report the amount from box 7 on Form 1040, line 7 . . . So do the pros believe that it woul...

Previously posted: See also p. 25 of Publication 15 (Circular E), Employer's Tax Guide https://www.irs.gov/pub/irs-pdf/p15.pdf Part-Time Workers Part-time workers and workers hired for short periods of time are treated the same as full-time employees, for federal income tax withholding and social se...

So OP, if you don't mind, please come back and tell us if you think you were an employee or an independent contractor. I posted a link to a checklist earlier in this thread. Where do you think your work fit? And for those who are the tax pros, is there a third option, neither employee, nor independe...

The 1040 instructions p. 22 say that if you didn’t receive a W-2 (despite your efforts to do so) then the income belongs on line 7 https://www.irs.gov/pub/irs-pdf/i1040gi.pdf Missing or Incorrect Form W-2? Your employer is required to provide or send Form W-2 to you no later than January 31, 2018. I...

I have wondered that too. Trades seem to be settling a lot faster lately. Maybe it's time to review their regulations: https://investor.vanguard.com/investing/online-trading/trading-penalties Yesterday I transferred $10K from my bank to VG. This morning it was available to trade though I also saw a ...

Workman’s Compensation Insurance would not only protect her employees, but would also cover some business liability in the case of the injury of an employee if the business were found to be at fault. It can be a steep but necessary climb when a business hires employees. If they don’t want Workman’s ...

We’ve been doing just what you are asking about. Only we are not in the Peace Corps and we have a lot less 2017 earned income to invest between the two of us. Something to watch out for in the future as your amount of earned income may be decreasing: Funds may have a minimum investment for an IRA. O...

The LLC could have made itself subject to some terms dictated by the mother’s trust. The family should take both of these legal documents to a qualified professional to decipher the nuances for them. We have very little to go on since LLC rules can vary a lot.

A learning opportunity presents: Let's look together just a bit further down at the 1099 instructions found on pp. 1 and 2 of the pdf: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf Trade or business reporting only. Report on Form 1099-MISC only when payments are made in the course of your trade or bu...

I am not sure of the answers to your questions, so please don’t draw firm conclusions from any of these ideas I am bringing up. Has there been a big increase in the land value since it was put into the trust LLC? If this happened very recently, it might have even dropped in value since then. If it w...

When there is an eight years age spread between spouses, then it is perhaps more likely that the older spouse will be resting in Green Acres for a few extra years while the younger spouse will be taking the larger of the two benefits. Since your wife will receive much higher SS benefits on your reco...

Sometimes a younger and healthier spouse who is also the caregiver is what prevents or shortens the need for long term care. See p. 228 of this book "Last Chance to Get it Right: How to Avoid Eight Deadly Mistakes Made with Money" by J. Thomas Moore. https://books.google.com/books?id=yv1Z3O9orGIC&pg...

If you or your spouse are getting close to needing long term care and you don’t have good LTC insurance; then if these funds are withdrawn in the same year when you have big LTC expenses, the taxable income portion may be partially deducted on Schedule A.

Here's a 20-point checklist for the owner of the business. OP can probably fill it out accurately enough to know if he was an Independent Contractor (1099) or an employee (W-2). https://www.walthall.com/wp-content/uploads/2014/09/IRS-Indep-Contr-20-Point-Checklist.pdf If you answer “Yes” to all of t...

Here's a tax form which might be helpful, especially the instructions, if not the form itself. Maybe take this over to the neighbor and ask for her help filling it out. This will alert her to her responsibility and she can take care of it now, if she hasn't already. Is it possible that she did pay F...

To keep your neighbor and yourself out of trouble, ask her to give you a proper W-2. She might have a late fee and she may have to pay some other employment taxes such as FUTA if required for your state. If you don’t get the W-2 in time, file for an extension. If she does this right the first time a...